How to work out tax liability for non-domicile business in UK (Father Christmas not exempt)
Having discussed our client (Father Christmas)'s immigration position last week, it seemed appropriate to consider his residence and domicile position bearing in mind the large number of gifts he intended to make in a short period of time.
I began by explaining that the main tax that might affect his plans was inheritance tax (IHT). UK liability to IHT depends, for the most part, on the concept of domicile, which essentially equates to the concept of a permanent home and the situs of the asset. Completing a domicile questionnaire together, it soon became clear that he did not have a domicile of origin in England and Wales.
To read the article in full go to Spear's blog.
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